A top Taiwanese official has moved to calm a controversy provoked by President Chen Shui-bian's suggestions about a referendum on independence for the island.

Do not over-interpret - we do not want the independence we enjoy now to be destroyed or changed

Tsai Ing-wen, Mainland Affairs Council

The head of Taiwan's Mainland Affairs Council, Tsai Ing-wen, said the remarks made by the president on Saturday did not signal a policy change.

China warned on Monday that any referendum would lead the island to "disaster", affecting its economy and the interests of its people.

Taiwan broke with China at the end of a civil war in 1949 and Beijing still views the island as a renegade province.

Mr Chen's comments lifted tensions between the two sides to their highest level in some time.

Chinese warning

Ms Tsai is travelling to the US, reportedly to discuss Mr Chen's comments and reassure Washington that there has been no change in Taipei's stance.

We seriously warn Taiwan... to immediately stop the horse at the edge of the precipice

Chinese spokesman

Before leaving Taiwan she told reporters not to "over-interpret" the president's speech.

"We do not want the independence and sovereignty we enjoy now to be destroyed or changed," she said.

Beijing has accused Mr Chen of trying to "split" China, warning that a bid for independence would be against the interests of the Taiwanese people and would "affect the economy of Taiwan, harm the fundamental interests of Taiwan residents and bring Taiwan into disaster".

"We seriously warn Taiwan splittist forces not to wrongly judge the situation, to immediately stop the horse at the edge of the precipice and to stop all splittist activities," said Li Weiyi, a spokesman for China's Taiwan Affairs Office.

"Both the mainland and Taiwan are part of China. The sovereignty and territorial integrity of China can't be separated," the Chinese spokesman said.

The Taiwanese stock market plunged 5% in early Monday trading, reflecting concerns over the disagreement between the two countries.

Earlier pledge

The latest spat between Beijing and Taipei erupted on Saturday, when President Chen referred to Taiwan and China as two countries, echoing comments made by his predecessor three years ago that dramatically raised tensions with Beijing.

	1949: Chinese Nationalists flee to Taiwan as People's Republic of China declared 1979: China-US diplomatic ties established after Washington switches recognition from Taipei 2000: Chen Shui-bian elected Taiwan president. Beijing threatens to attack if island attempts to secede 2001: Taipei lifts ban on direct trade and investment with China 2002: Taiwan warns China is boosting military spending and losing patience over peaceful reunification Q&A Taiwan's relations with China

Holding a referendum was ''a basic human right that cannot be deprived or restricted", Mr Chen told pro-independence activists in Tokyo during a video conference.

The president gave no timetable, but his remarks contrasted with an earlier pledge not to push for a referendum on independence during his four-year tenure.

In July 1999, then-President Lee Teng-hui said Taiwan and China had ''special state-to-state'' relations, triggering a round of intense sabre-rattling during which Chinese fighter jets flew sorties in the Taiwan Strait.

The US is the only Western power that supplies Taiwan with defensive weapons, and has warned China that it will protect Taiwan should China attack.

However the US has also said that it will not defend the island if it begins an unprovoked war of independence.